I. Analysis of China's cable industry development prospects:
As one of the important supporting industries for national economic construction, the wire and cable industry is the second largest industry in the machinery industry after the automotive industry. According to statistics, China's wire and cable industry has 4,653 large-scale and above-scale enterprises, 85 enterprises with annual main business income of over 1 billion yuan, and 36 companies with assets of over 1 billion yuan. In 2009, the total output value reached 731 billion yuan, accounting for more than 2% of China's GDP. According to statistics from the China Machinery Industry Federation, in the past 15 years, the wire and cable industry has grown at an average annual rate of more than 15%. In the next few years, due to China's late industrialization, the development speed of the wire and cable industry in China will be higher than the national economy. It is expected that More than 10%; especially the average annual growth of power wires and cables can reach 15%.
Second, the bottleneck restricting the development of China's wire and cable industry:
The extremely uneven development level of China's wire and cable industry is a huge bottleneck that restricts its development, mainly reflected in: (a) The wire and cable industry has low production concentration. The market share of 19 large companies is only 11.70%. The market share of 409 medium-sized companies was 36.90%. Most companies are limited in their competition in terms of scale, price, etc., and are not sufficient to withstand the strong competition of multinational companies. There is a lack of main bodies and channels for technological innovation, diffusion, and integration within the company. (b) In the value chain of the industry, there is a lack of high-end and low-end melee. The high-end market is dominated by famous foreign cable manufacturers. Due to the lack of high-end innovation capability, China's cable manufacturers can only conduct price melee in the low-end market where domestic wire and cable products have been highly homogenized.
(3) The improvement of soft power is incompatible with the development of hard power. In the past few years, the growth of fixed assets in the wire and cable industry has been significantly higher than the increase in sales. The expansion of the scale has not completely brought about a significant increase in the efficiency of corporate development.
Third, the development trend of the cable industry to be integrated:
According to the development experience of cable industry in developed countries such as Europe, America and Japan, with the improvement of the industrialization of the country, the improvement of infrastructure, and the improvement of urbanization level, the cable industry will surely mature, and there will be obvious polarization in the industry. With the increase, the top 10 in the United States have a market share of 67%, the top 6 in Japan has a market share of 65%, and the top 5 in France has a market share of 90%. Although the industry concentration is low, the cable industry market is in a scattered market, but the wire and cable industry has maintained a high growth, rapid increase in production efficiency, accelerated product upgrading, product structure has become more reasonable, the industry capital structure is increasingly The process of diversification and marketization has been markedly accelerated; in particular, the advantages of wire and cable manufacturing in the coastal and economically developed regions have been obvious, and regional differences have further widened. At the same time, through mergers and acquisitions, mergers, acquisitions, and other restructuring operations, the stock assets have been revitalized and the industry concentration will surely rise to a reasonable level. If the market concentration is increased to 50%, then there will be a group of cable manufacturers with annual sales of 10 billion yuan. It is therefore determined that Chinese cable companies still need to undergo a long-term globalization and marketization before they can emerge. A group of large-scale, market-competitive enterprises worth 10 billion yuan.
As one of the important supporting industries for national economic construction, the wire and cable industry is the second largest industry in the machinery industry after the automotive industry. According to statistics, China's wire and cable industry has 4,653 large-scale and above-scale enterprises, 85 enterprises with annual main business income of over 1 billion yuan, and 36 companies with assets of over 1 billion yuan. In 2009, the total output value reached 731 billion yuan, accounting for more than 2% of China's GDP. According to statistics from the China Machinery Industry Federation, in the past 15 years, the wire and cable industry has grown at an average annual rate of more than 15%. In the next few years, due to China's late industrialization, the development speed of the wire and cable industry in China will be higher than the national economy. It is expected that More than 10%; especially the average annual growth of power wires and cables can reach 15%.
Second, the bottleneck restricting the development of China's wire and cable industry:
The extremely uneven development level of China's wire and cable industry is a huge bottleneck that restricts its development, mainly reflected in: (a) The wire and cable industry has low production concentration. The market share of 19 large companies is only 11.70%. The market share of 409 medium-sized companies was 36.90%. Most companies are limited in their competition in terms of scale, price, etc., and are not sufficient to withstand the strong competition of multinational companies. There is a lack of main bodies and channels for technological innovation, diffusion, and integration within the company. (b) In the value chain of the industry, there is a lack of high-end and low-end melee. The high-end market is dominated by famous foreign cable manufacturers. Due to the lack of high-end innovation capability, China's cable manufacturers can only conduct price melee in the low-end market where domestic wire and cable products have been highly homogenized.
(3) The improvement of soft power is incompatible with the development of hard power. In the past few years, the growth of fixed assets in the wire and cable industry has been significantly higher than the increase in sales. The expansion of the scale has not completely brought about a significant increase in the efficiency of corporate development.
Third, the development trend of the cable industry to be integrated:
According to the development experience of cable industry in developed countries such as Europe, America and Japan, with the improvement of the industrialization of the country, the improvement of infrastructure, and the improvement of urbanization level, the cable industry will surely mature, and there will be obvious polarization in the industry. With the increase, the top 10 in the United States have a market share of 67%, the top 6 in Japan has a market share of 65%, and the top 5 in France has a market share of 90%. Although the industry concentration is low, the cable industry market is in a scattered market, but the wire and cable industry has maintained a high growth, rapid increase in production efficiency, accelerated product upgrading, product structure has become more reasonable, the industry capital structure is increasingly The process of diversification and marketization has been markedly accelerated; in particular, the advantages of wire and cable manufacturing in the coastal and economically developed regions have been obvious, and regional differences have further widened. At the same time, through mergers and acquisitions, mergers, acquisitions, and other restructuring operations, the stock assets have been revitalized and the industry concentration will surely rise to a reasonable level. If the market concentration is increased to 50%, then there will be a group of cable manufacturers with annual sales of 10 billion yuan. It is therefore determined that Chinese cable companies still need to undergo a long-term globalization and marketization before they can emerge. A group of large-scale, market-competitive enterprises worth 10 billion yuan.
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